Tinubu to address energy crisis as Proton plans N345.3b FDI
• Nigeria to get 500MW electricity, address gas flaring
• NNPC, Shell, Total, Eni seal long-term gas deal
Kebbi State Governor, Abubakar Atiku Bagudu, and renowned financial expert, Wale Edun, who were both nominated into the transition council of President-elect, Bola Tinubu, said in Abuja, yesterday, that the new government is committed to solving Nigeria’s energy crisis.
This was as Proton Energy considered over N345.3 billion ($750 million) worth of foreign direct investment in the energy sector. While the move aims to add about 500 megawatts of electricity to the national grid, reduce gas flaring and create thousands of jobs, Bagudu said exploring the country’s gas resources, in the face of the Russia-Ukraine war, remains a priority for the new government.
Speaking at the signing of a long-term gas supply agreement with Shell SPDC Joint Venture, he said the new initiative is a statement of confidence in foreign direct investment into the country.
“About a year ago, on the back of the Ukraine crisis, Nigeria came to appreciate the economies of our gas. That suggests that we can do more with our gas. In less than a month, the President-elect will be sworn in. He believes in gas resources and the ability of Nigeria to compete with other countries,” Bagudu said.
Edun said Tinubu believes in the private sector and would make ways for investment and infrastructure. He said investment, such as Proton’s, is sacrosanct, adding that it would improve the country’s ability to boost its economy, create an enabling environment and jobs.
The Proton Delta Sunrise project, expected to be delivered in two phases of 150MW of electricity to the national grid and 350MW, would create an inflow of combined $750 million investment, said Executive Vice Chairman and Chief Executive Officer of the company, Oti Ikomi.
Disclosing that the first phase would reach commercial operations in 2025, Ikomi said the project would not only comply with the Environment, Social and Governance (ESG) framework but also reduce gas flaring and monetise the nation’s gas resources.
According to him, it will also impact about 400,000 households and small and medium businesses, while creating about 1,000 new direct and indirect jobs.
Ikomi noted that the agreement between Proton Energy Limited (Proton), Nigerian National Petroleum Company Ltd. (NNPCL), Shell Petroleum Development Company of Nigeria Limited (SPDC), TotalEnergies EP Nigeria Limited (Total), Nigerian Agip Oil Company Limited (NAOC) and Gas Aggregation Company Nigeria Limited (GACN) for the supply of natural gas for the 150 MW first phase of the project would improve the dismal state of power supply in the country.
He said the plan is in line with the government’s twin objectives of accelerating the development of a robust electricity sector and better utilizing its gas endowment for the betterment of citizens.